Retirement tax questions

I am having the exact same issue.  First I went through the logical place to do this, and when it tried to make it taxable I deleted it.  Then I followed the instructions on the Thread EXACLY and it still reports as taxable.  So, this is NOT operator error, this is a software issue.  Hopefully it is addressed in an update in the next week or so, since this is the only thing keeping me from filing my son's return.